The Ghana government has increased the farmgate price of cocoa beans by 21 per cent starting from today from October 7.
A bag of cocoa has increased from GH¢660 to GH¢800. It now costs GH¢12,800 per tonne for the country’s main crop this 2022/2023 season.
“The 21{c59f2d9e93250d9a3f00f33c4784bba748f246721195afccc412c2cbc44f328a} rise in the producer price of cocoa is a testament to government’s resolve to ensure farmers earn a decent income and make cocoa farming lucrative,” the Agriculture Minister, Owusu Afriyie Akoto announced.
Speaking to the media, the Minister said: “We are all aware of the depreciation of the cedi this year. This means government will have to take some cut.
“We are pleased to announce that government has increased the producer price of cocoa by 21 per cent from ¢10,560 per tonne to ¢12,800.00 per tonne. The producer price represents 89.99 per cent of the net FOB value. This figure translates into GH¢800 per bag of 64 kg. gross weight and takes effect from Friday, October 7, 2022.”
Cocoa production in Ghana has declined this year, from a forecast of 800,000 tonnes, the country was only able to produce 689,000 tonnes as at September 1.
The Ghana COCOBOD, the government agency that buys cocoa from farmers to sell on the international market had come under some financial difficulties and has been unable to pay its debt. The COCOBOD had been struggling to repay a $1.13 billion syndicated loan it had taken from international banks to finance cocoa purchases for the upcoming season.
Ghana is the second largest producer of cocoa in the world after its western neighbour Cote d’Ivoire, but the two countries get a significantly less of the over $100 billion revenue generated in the global chocolate industry, less than two per cent.
